Shawn Layden, a former 30-year Sony veteran and one of the company's top gaming executives, has shared his thoughts on the current state of video game hardware advancements. Speaking at Gamescom Asia this week, Layden stated that he believes increased power alone is no longer a significant factor in hardware development. "It has plateaued. We're at the stage of hardware development that I call, 'Only dogs can hear the difference,'" he said, as reported by VGC. "If you're playing your game and sunlight is coming through your window onto your TV, you're not seeing any ray tracing. It has to be super optimal… you have to have an 8K monitor in a dark room to see these things."

Layden further commented that Microsoft and Sony are currently "fighting over teraflops," but he argues that this is not the correct approach. Instead, he advocates for game companies to "compete on content" as he believes video game consoles have "reached the ceiling." Layden also pointed out that the real winner in the so-called console war is AMD, whose chips power both the PS5 and Xbox Series X|S. Looking ahead, a recent report suggests that Sony will once again partner with AMD for the PS6, after Intel reportedly attempted to secure a deal with Sony.

Although Sony has not officially confirmed plans for a new PlayStation console, Microsoft has expressed its intention to create the "biggest technological leap" ever for any video game console. It remains unclear what this will entail, but a recent report indicates that the next Xbox could be paired with a handheld device. Layden emphasized that the video game industry has "reached the precipice" for how games are made, and it's no longer sustainable. "We cannot continue to do things that we have done before," he said. "It's time for a real hard reset on the business model, a hard reset on what it is to be a video game."

During his speech at Gamescom Asia, Layden also discussed what he perceives as a "collapse of creativity" in the video game industry.